Indian Overseas Bank (IOB) has provided significant relief to its savings account holders. The penal charge for not maintaining the Minimum Average Balance (MAB) in accounts has been waived with immediate effect. This will benefit customers who were unable to maintain MAB due to financial constraints or unknowingly.
Saving accounts: Indian Overseas Bank (IOB) has, with immediate effect, removed the penal charge for not maintaining the Minimum Average Balance (MAB) for its millions of customers. This decision reflects the bank's commitment to customer-centricity and financial inclusion. It will provide relief to account holders who previously had to pay charges unknowingly or due to financial hardship. The previously applicable charges will remain valid until September 30, 2025.
Initiative to Reduce Financial Burden for Customers
The objective of the bank's decision is to reduce unnecessary financial burden on customers and provide them with a simplified banking experience. According to a PTI report, this decision is a significant step towards making banking more convenient and stress-free for customers. The bank stated that this initiative reflects its commitment to customer-centricity and financial inclusion.
Existing Special Schemes
Indian Overseas Bank had already removed minimum balance charges for several special schemes such as IOB Sixty Plus, IOB Savings Bank Pensioner, Small Accounts, and IOB Savings Bank Salary Package. The bank has now extended this waiver to all general savings accounts. On this occasion, Ajay Kumar Srivastava, Managing Director and CEO of the bank, stated that this decision will provide significant relief to our account holders and simplify banking.
Key Highlights of the Decision
- What has been waived: The penal charge for not maintaining MAB in IOB savings accounts.
- When effective: This relief has been implemented with immediate effect.
- Past Charges: The bank has clarified that any charges already levied for the period up to September 30, 2025, will be processed as per existing rules.
General Account Holders to Benefit the Most
This step will most benefit general account holders who previously had to pay charges for not maintaining the minimum balance in their accounts, either unknowingly or due to financial constraints. This decision by the bank brings a message of relief to customers, especially during the festive season.
Objective to Simplify Banking Experience
Ajay Kumar Srivastava stated that their objective is to make banking easy and hassle-free for customers. The bank is continuously working towards adopting policies that reduce customers' financial difficulties and enable them to fully avail banking services.
Promoting Financial Inclusion
This move by the bank is also considered significant in the direction of financial inclusion. It will directly benefit customers in both rural and urban areas of the country. With relief from minimum balance charges, people will be able to properly use their accounts and conduct transactions without any fear.
